Pickens, heat wave conditions to push up nat gas

Natural Gas prices have been increasing in the global market, and there is now reason to believe the trend is anything but over.On Monday, the Commodity Weather Group

said that most parts of the U.S. Great Plains and Western Midwest states would see extreme heat conditions through July 18, before shifting eastward until it reaches most of the East Coast from July 21 to July 25. This heat wave is expected to raise prices as consumer use of natural gas increases due to use of air-conditioning. U.S. natural-gas inventories probably rose less than average last week as hotter-than-normal weather raised demand for the power-plant fuel, according to analyst estimates compiled by Bloomberg. Stockpiles were 1.9 percent below the five- year average and 8.1 percent below year-earlier levels. Jason Schenker, president of Prestige Economics LLC, an Austin, Texas-based energy consultant, said “It’s all a weather story and that could be price bullish.”
In Japan meanwhile, LNG imports increased to record 4.46 million tonnes. This on the back of the devastating earthquake is not surprising. Lost output from Fukushima and other nuclear and thermal plants have disrupted power supplies and has forced the country to turn to Natural Gas to offset the sharp decline of power supply from these reactors. And as more nuclear reactors are set to be shut down for maintenance checks, with 2 reactors due to do so later next month, it is rather obvious that the demand for natural gas will only go up.
Billionaire energy investor T. Boone Pickens said he is bullish on 2015 natural gas prices, pegging them above $6 per million British thermal units, holding options that convey the idea that gas will rise above $6, but not above $8. Mr. Pickens is co-founder of Clean Energy Fuels Corp. which sells compressed natural gas and liquefied natural gas that fuels light and heavy trucks. He also said he's been buying up U.S. shale acreage including in the Marcellus shale, one of the largest natural gas fields in the world located in the eastern U.S.
MCX Nat Gas July has lost 0.51% at 195.20 and August contract lost 0.46% at 196.10 on early morning trade following the weakness in Nymex
GEOJIT Comtrade view: MCX Nat gas July: Buy on dips to 190 targeting 197/205 with s/l below 184. S1: 190 S2: 184, R1: 199 R2: 206
Source: Commodity Online